Question

1.  What is the difference between a mechanic's lien and a judicial lien?

2.  What was the court's reasoning in the case, Hebbring v U.S. Trustee?

3.  Please explain how means testing works, when a debtor files for Ch. 7 bankruptcy.

Answer 1

• 1.A non-consensual lien is an interest in your property that is granted to a creditor to secure a debt you owe. The difference is that a non-consensual lien was obtained by the creditor involuntarily, or without your agreement. Most non-consensual liens come into play after you have failed to pay an obligation that was not generally thought of as secured.
• Judicial lien is a type of non-consesual lien. Those that result from court action are called judicial liens.Judicial lien is a lien obtained by judgment, levy, sequestration or other legal or equitable process or proceeding.
• Statutory liens can be created by federal or state laws. The property that is affected depends on what the lien attaches to. When a lien attaches to property, it gives the creditor a secured interest in that property which the creditor may be able to pursue and have sold to satisfy the debt. Mechanical lien is a common statutory liens.
• Most states have some form of mechanic lien statute. These liens apply when you have had work done on your property and have failed to pay for it. You could end up with a mechanics lien on your property if you had your roof repaired or replaced and failed to pay for it.
• Most statutes provide some definition of the type of work for which a mechanics lien is allowed. The statutes also generally set out procedures to enforce a mechanics lien as well as procedures for the property owner to contest the lien if the work wasn’t done or there was some problem with the work. There are often strict time deadlines.
• Mechanic's liens, are typically used by subcontractors and suppliers, and are a legal claim against property that has been remodeled or improved.
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